Experts have a name for the elusive strategy: freemium. The free-meets-premium model, according to app analytics company Flurry, is now generating more money than paid apps.

Furthermore, Applealso complied to an FTC mandate requiring the company to change its billing practices and ensure that customers are clearly informed beforebeing charged for their purchases. Apple will pay a minimum of $32.5 million to settle the case and has a March 31 deadline.

"This settlement is a victory for consumers harmed by Apple’s unfair billing, and a signal to the business community: whether you’re doing business in the mobile arena or the mall down the street, fundamental consumer protections apply," she added.

In a letter sent to Apple employees today on Wednesday, Apple CEOTim Cook said that it is a doublejeopardy, adding that it didn't feel right for the FTC to sueover a case that had already been settled.

"However, the consent decree the FTC proposed does not require us to do anything we weren’t already going to do, so we decided to accept it rather than take on a long and distracting legal fight," he added.

Apple has received 37,000 claims from parents all in all. "We will be reimbursing each one as promised," Apple said.

The Author

Gene Ryan BrionesGene Ryan Briones (Google+) is a technology journalist with a wide experience in writing about the latest trends in the technology industry, ranging from mobile technology, gadgets and robots, as well as computer hardware and software.